BNK Petroleum Inc. Announces Private Placement to Close in Two Tranches and Status of Subsidiary's Replacement Credit Facility

Camarillo California (ots/PRNewswire) - BNK Petroleum
Inc. (the "Company") is pleased to announce that the TSX has
accepted notice of the previously announced CDN $66 million private
placement of shares with Quantum Partners LP and has conditionally
approved the listing of the 26 million shares to be issued in the
private placement.

The private placement will close in two tranches in order to
accommodate the time required to complete background checks required
by the TSX when a transaction results in a new insider. The first
tranche of 10,600,000 shares is expected to close before October
29th, 2010. The second tranche for the balance of the 26 million
shares will close, subject to satisfaction of any remaining
conditions within three business days of TSX confirmation that it has
cleared the relevant information. The Company intends to use the net
proceeds of the private placement for general corporate purposes,
including work commitments on its European shale gas concessions.

The Company is also pleased to report that definitive
documentation is near completion for the previously announced BNK
Petroleum (US) Inc. ("BNK US") replacement credit facility. BNK US is
the Company's indirect wholly-owned subsidiary which holds its US oil
and gas interests. The initial commitment amount of the new
revolving, reserves-based facility is expected to be US$20,000,000,
with a maximum commitment of US$100,000,000. The facility will
replace BNK US's existing facility that is anticipated to total
approximately CDN $23.5 million inclusive of accrued interest at
closing. The balance due of CDN $3.5 million will be paid from cash
on hand. The replacement facility will have a three year term and be
secured by the assets of BNK US and a guarantee of the Company.
Unlike the existing credit facility which requires monthly repayments
of principal based on a percentage of BNK US operating income, it is
expected that under the new facility BNK US will make monthly
payments of interest, with payments on account of principal required
only if the borrowing base (calculated based on BNK US oil and gas
reserves) were to be reduced. Interest is expected to be LIBOR or
base rate pricing plus an applicable margin subject to a minimum
interest rate of 4.25%. BNK US is continuing discussions with other
lenders to provide additional financing on substantially identical
terms that would increase the total size of the new facility from CDN
$20-million to CDN $23.8-million.

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including information regarding the
proposed private placement, the estimated closing date of the
financing and the proposed use of proceeds. Forward-looking
information is based on plans and estimates of management at the date
the information is provided and certain factors and assumptions of
management, including that the parties will reach a binding agreement
in respect of the private placement and that the required capital and
all necessary regulatory approvals will be available to complete the
financing. Forward-looking information is subject to a variety of
risks and uncertainties and other factors that could cause plans,
estimates and actual results to vary materially from those projected
in such forward-looking information. Factors that could cause the
forward-looking information in this news release respecting the
private placement to change or to be inaccurate include, but are not
limited to, the risk that closing of the private placement
transaction may be delayed, that not all conditions to closing of the
private placement will be satisfied, that the Company will experience
a material adverse effect, and that the necessary regulatory
approvals will not be obtained. Factors that could cause the
forward-looking information in this news release respecting the
replacement credit facility to change or be inaccurate include the
possibility that the lender or lenders will impose additional
conditions, that final documentation is not agreed and the risks
associated with the credit markets generally. The Company undertakes
no obligation to update these forward-looking statements, other than
as required by applicable law.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based international oil and gas
exploration and production company focused on finding and exploiting
large, predominately unconventional oil and gas resource plays.
Through various affiliates and subsidiaries, the Company owns and
operates shale gas properties and concessions in the United States,
Poland and Germany. Additionally the Company is utilizing its
technical and operational expertise to identify and acquire
additional unconventional projects outside of North America. The
Company's shares are traded on the Toronto Stock Exchange under the
stock symbol BKX.

For further information, contact:
Wolf E. Regener, President and Chief Executive Officer
+1-805-484-3613
Email: investorrelations@bnkpetroleum.com
Website: http://www.bnkpetroleum.com

ots Originaltext: BNK Petroleum Inc.
Im Internet recherchierbar: http://www.presseportal.de

Contact:
CONTACT: For further information, contact: Wolf E. Regener,
President andChief Executive Officer, +1-805-484-3613,
Email:investorrelations@bnkpetroleum.com